Update on consumer law and your prices
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dhewitt@abta.co.uk Thu, 11/27/2025 - 11:18
We can now update our previous guidance, and there has been a change to the Guidance to the Code of Conduct.
The CMA last week issued its decision on the latest consultation, with guidance on pricing and a first round of enforcement action using the new consumer law powers.
The guidance is important as it gives the CMA’s view of the law, and the CMA enforces the law. Despite ABTA’s arguments on behalf of members, see previous news item, this guidance will impact members in relation to tourist taxes and resort fees.
As a starting point, this states that “Presenting a fully inclusive total price in a clear and timely way will normally be enough for traders to comply with the requirements of the [law]”.
It goes on to deal with various pricing issues. This includes the CMA’s contention that ‘local taxes, resort fees and other unavoidable charges that become payable on arrival or departure at hotels, ports or airports’ must be converted and included in headline prices. See in particular sections 5.37 onwards. It provides an example of how this could be achieved, which has changed slightly from the draft version:
Our Code Guidance previously stated that tourist taxes and resort fees should be clearly notified to clients before they booked. This has been amended as keeping these extras separate to prices will not now satisfy the CMA. The guidance at page 4 now tells members what the law requires and refers to the guidance available.
The CMA has stated that it will give 3 months from publication of the guidance, in which it will support businesses to comply with the legislation rather than taking enforcement action.
Members should be aware that the CMA has new powers to decide on breaches of consumer law and issue fines without going to Court, as stated in one of our previous updates.
ABTA will continue to engage with the CMA, in particular to make the case for members that a practical approach to enforcement must be taken by the CMA, as the changes members will have to make to follow this guidance are difficult, expensive and time-consuming.
If you have any queries, please contact Member Support on membersupport@abta.co.uk, or 020 3117 0597.
Continue reading...
Full Page image
dhewitt@abta.co.uk Thu, 11/27/2025 - 11:18
We can now update our previous guidance, and there has been a change to the Guidance to the Code of Conduct.
The CMA last week issued its decision on the latest consultation, with guidance on pricing and a first round of enforcement action using the new consumer law powers.
The guidance is important as it gives the CMA’s view of the law, and the CMA enforces the law. Despite ABTA’s arguments on behalf of members, see previous news item, this guidance will impact members in relation to tourist taxes and resort fees.
CMA guidance
As a starting point, this states that “Presenting a fully inclusive total price in a clear and timely way will normally be enough for traders to comply with the requirements of the [law]”.
It goes on to deal with various pricing issues. This includes the CMA’s contention that ‘local taxes, resort fees and other unavoidable charges that become payable on arrival or departure at hotels, ports or airports’ must be converted and included in headline prices. See in particular sections 5.37 onwards. It provides an example of how this could be achieved, which has changed slightly from the draft version:
ABTA Code of Conduct
Our Code Guidance previously stated that tourist taxes and resort fees should be clearly notified to clients before they booked. This has been amended as keeping these extras separate to prices will not now satisfy the CMA. The guidance at page 4 now tells members what the law requires and refers to the guidance available.
Next steps
The CMA has stated that it will give 3 months from publication of the guidance, in which it will support businesses to comply with the legislation rather than taking enforcement action.
Members should be aware that the CMA has new powers to decide on breaches of consumer law and issue fines without going to Court, as stated in one of our previous updates.
ABTA will continue to engage with the CMA, in particular to make the case for members that a practical approach to enforcement must be taken by the CMA, as the changes members will have to make to follow this guidance are difficult, expensive and time-consuming.
If you have any queries, please contact Member Support on membersupport@abta.co.uk, or 020 3117 0597.
Continue reading...
